 AK Mortgage Plus |
Mike Doyle (STI)
Mortgage Consultant 103 - 7337 137th Ave Surrey BC V3W 1A4 Phone 604-230-6790 Fax (Toll Free) 866-849-0822 |
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Mortgages
Forms and Booklets
Mike Doyle
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Low Down Payment Mortgages Up to 95% financing is available (oac) if you are purchasing or refinancing your home. Canada's two major insurers, CMHC and Genworth Financial, now provide specialty financing products for first time homebuyers with a low down payment required. Additionally, if money is tight and you think that you may need a little help getting through those first few months in your new home, you may want to consider a Cash Back mortgage. As an example, your Bank will offer a 5 yr mortgage at 6.50% (posted rate) but are willing to give a 'preferred' rate of 5.50% to their clients who have excellent credit and income. Even though the 1% seems attractive, I am usually able to negotiate discounts of 1.5% or more depending on the term and Bank. The difference between the posted rate (6.50%) and the preferred rate (5.50%) is referred to as a discount. With a Cash Back mortgage, the client receives a cash rebate instead of the discount discussed above. This rebate varies depending on the Bank and term chosen, but ranges anywhere from 1% to 5% of the mortgage amount. The most common is the 4% Cash Back mortgage. This money can be useful for the fist time buyers who needs extra funds to purchase home improvement items such as blinds, carpet, appliances, or even furniture. For Cash Backs that are higher than 4%, you typically have to commit to a longer mortgage term such as a 7 or a 10 year fixed closed term. Some advantages to a Cash Back mortgage:
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